Global stock markets diverge

Traders works on the floor of the New York Stock Exchange (NYSE) in New York City. Kena Betancur/Getty Images/AFP

World stock markets diverged on Monday as investors tracked a record on Wall Street fuelled by a better-than-expected jump in US jobs.

Among individual sectors, financials were boosted by US President Donald Trump’s review of trading regulations, an analyst said.

However, the dollar’s struggles extended as the employment report also showed tepid wage growth, which chimed with the Federal Reserve’s plans to raise interest rates only gradually.

“Transatlantic politics remains ever dominant,” said Mike van Dulken, head of research at Accendo Markets.

While the week has started on a positive note, investors are on edge as they try to assess how a Trump presidency will affect the global economy following his outbursts against trade deals and accusations Japan and China were manipulating their currencies.

New York’s main indices provided a positive lead Friday, with the Dow bouncing back above 20,000 points and the Nasdaq hitting an all-time high after figures showed 227,000 new jobs were created in January.